- A municipality can determine the deductible VAT for each type of activity using the most appropriate calculation method for its specific purchases.
- When a building is used for both VAT-exempt and VAT-taxed activities, the municipality may use a surface area proportion method to calculate deductible VAT.
- The court ruled that the municipality can use a different method for calculating the VAT proportion than the one specified by the finance minister’s regulation.
- The case involved a three-story building partly for VAT-taxed rental and partly for non-commercial public purposes, such as a health center, municipal guard, social assistance center, library, therapy workshops, and senior day center.
Source: podatki.gazetaprawna.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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